Thorchain's app-layer proposal takes decentralization to the next level with Permissionless & Segregated Security Budgets.
Read In Full Here: https://x.com/ol3gpetrov/status/1878397782358384652app layer
Key ideas:
- Permissionless app layer: Market participants decide what to secure and run.
- Segregated security budgets: Each protocol has risks and rewards, protecting Thorchain's core and $RUNE holders.
Why this matters:
1️⃣ Isolates Thorchain's core reputation from app-layer risks.
2️⃣ Encourages innovation by removing centralized gatekeeping.
3️⃣ Attracts diverse participants, from innovators to risk-averse investors.
How it works:
- Developers create independent bonding addresses with a fee to prevent spam.
- Bonded $RUNE secures app-layer protocols, tying success to Thorchain's ecosystem.
- Liquidation mechanisms ensure liquidity layers remain protected.
This design offers flexibility and growth for Thorchain's ecosystem while minimizing systemic risks. Let's debate, iterate, and build! 🚀
#Thorchain #DeFi #AppLayer #CosmWasm #CryptoInnovation